Per SEC rules, accreditation verifications are only valid for 90 days after the date of review. We understand this limitation can be particularly frustrating for users who do not want to upload documentation every three months or constantly ping their accountant / CPA / investment adviser for new verification letters. Keeping your accreditation status current is important if you wish to continue making investments - absent a current and valid accreditation verification, you will not be able to participate in new private placements that utilize general solicitation or advertising. To the extent you are simply holding onto previously made investments, there is no obligation to renew your accreditation. We have developed a number of solutions to help minimize the amount of effort our users have to expend in keeping their accreditation status up-to-date:
Income-Based Verification. When a user submits an accreditation verification application using the income test, we ask that user to make a continuous representation as to their expected income for the remainder of the year. The user undertakes an obligation to inform us of any changes to their expected income level, which enables us to automatically re-issue accreditation verifications every 90 days for the remainder of the calendar year.
Single Click Information Sharing. One of the greatest frictions in investor onboarding is the lack of ability to re-use previously provided data. Investors are constantly asked to provide redundant information across platforms. A twenty-year relationship at Fund A becomes irrelevant when you try to make an investment in Fund B. At Parallel, we think investors should be able to securely store their sensitive data and share it with third parties upon request. Our technology enables investors to share relevant investor data (profile information, investment history, accreditation status and more!) with any of our platform partners in a single click. Imagine a world where you can simply approve access to your information rather than repeatedly answer questionnaires and check boxes. That is the world we are bringing into existence.
Additional Product Development. We are constantly looking for ways to improve the investor onboarding experience. We will always look to roll out additional features that make our users’ lives better. Ultimately, we want our users to be able to remain accredited year-round without having to submit new documentation. We will enable our users to link bank/brokerage account information and credit bureau liabilities information to maintain an ongoing understanding of net worth and allow us to re-issue letters without interruption.